SGG launches e-Methanol business

According to SGG, e-Methanol is part of a class of emerging electro-fuels (e-fuels) using so-called Power-to-X (PtX) technologies that use renewable energy and captured carbon dioxide (CO₂) including CO₂ from the air (direct air capture – DAC).

Other synthetic fuels produced using PtX include e-methane and e-jet (sustainable aviation fuel – SAF).

The major benefit of working with e-fuels and DAC is carbon neutrality. CO₂ released when the fuels are used is entirely offset by the CO₂ extracted from the air to produce them.

SGG’s approach is based on small process modules which are standalone and completely powered by solar energy. SGG intends to manufacture the process modules in Australia.

The process involves SGG’s proprietary technology for the extraction of water and CO₂ from the air.

Once hydrogen is electrolyzed from water extracted from the air, the CO₂ is then combined with the hydrogen in a reactor to form methanol.

SSG’s Founder and Managing Director, Rohan Gillespie, foresees e-methanol as vital fuel for Australia’s future.

There is an existing sizeable market for methanol in Australia. The only local producer, the Laverton plant in Melbourne, closed in 2016 because of high gas prices. SGG’s technology is immune from gas prices, being entirely powered by solar, said Rohan Gillespie.

A major benefit to Australia of local methanol production is fuel security, which is becoming a major concern, Rohan Gillespie said.

SGG remains focused on completing the Wallumbilla Renewable Methane Demonstration Project, which is complimentary as it deploys all the major components of a methanol module.

SGG will now start the development process, selecting project sites and founding buyers.

Over the medium term, SGG aims to develop sufficient module manufacturing capacity to realize a methanol cost that would make it competitive with today’s fossil fuels.